Beacon Inc. is considering buying a new machine. This machin…
Beacon Inc. is considering buying a new machine. This machine will replace an old machine that still has a useful life of 6 years. The new equipment will cost $3,610 per year to operate, compared to the old equipment, which costs $3,825 per year to operate. Additionally, due to increased capacity, an additional 20,100 units can be produced each year. The company makes a contribution margin of $0.10 per unit. The old machine can be sold for $7,100, and the new machine costs $30,100. The incremental annual net cash inflows provided by the new machine would be (Ignore income taxes.):